Overview
- Investors will parse Intel’s Q1 results on Thursday for signs that server CPU shortages peaked in the first quarter and that yields on its 18A manufacturing process are improving.
- Intel on April 1 agreed to buy back Apollo’s 49% stake in Fab 34 in Ireland for $14.2 billion, giving it full control of a key advanced-node plant as it scales capacity for AI infrastructure.
- A multiyear pact announced April 9 with Google keeps Xeon processors in Google Cloud’s instances and expands co-development of infrastructure processing units, chips that offload networking, storage, and security work from the CPU.
- Analysts have raised targets but mostly stick to cautious ratings, with Stifel lifting its target to $65 (Hold), BNP Paribas moving to Neutral with a $60 target on Monday, and Morgan Stanley taking its target to $56 (Equal-Weight) on Tuesday.
- Intel’s shift from PCs to data‑center chips and visible progress on 18A, including last week’s Core Series 3 launch built on that node, have fueled the rally, while the sector’s AI build-out remains constrained across chips and tools according to recent reports from ASML and others.